Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they
are used for other purposes.
F I S C A L I M P A C T R E P O R T
SPONSOR Herndon
LAST UPDATED
ORIGINAL DATE 2/25/2025
SHORT TITLE Housing Stabilization Program
BILL
NUMBER House Bill 420
ANALYST Esquibel
APPROPRIATION*
(dollars in thousands)
FY25 FY26
Recurring or
Nonrecurring
Fund
Affected
$6,000.0 Recurring General Fund
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected
HCA BHSD $346.1 $346.1 $692.2 Recurring General Fund
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Relates to an appropriation in the General Appropriation Act. Duplicates Senate Bill 350
Sources of Information
LFC Files
Agency Analysis Received From
Corrections Department (CD) Health Care Authority (HCA) New Mexico Mortgage Finance Authority (MFA)
SUMMARY
Synopsis of House Bill 420
Senate Bill 350 (SB350) would appropriate $6 million from the general fund to the Health Care
Authority (HCA) to address transitional housing support needs for former inmates reentering the
population and administer a housing stabilization program.
FISCAL IMPLICATIONS
The appropriation of $6 million contained in the bill is a recurring expense to the general fund. House Bill 420 – Page 2
Any unexpended or unencumbered balance remaining at the end of FY26 shall revert to the
general fund.
HCA indicates it would be unable to spend the $6 million appropriation in one year just serving
the smaller reentry population.
SIGNIFICANT ISSUES
The General Appropriation Act of 2025 as passed by the House of Representatives includes
$221.4 million for housing and housing support services. This amount includes $110 million to
support transitional housing and the expansion of housing services providers that facilitate
behavioral health services and substance abuse recovery, homelessness assistance, and
prevention for persons with behavioral health needs, including $80 million for programs in
Albuquerque and Bernalillo County and $10 million for programs in Las Cruces and Doña Ana
County.
ADMINISTRATIVE IMPLICATIONS
The Health Care Authority’s Behavioral Health Services Division (BHSD) indicates it would
require an additional 2 FTE to implement the provisions of the bill at a cost of $346 thousand.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
HB420 duplicates Senate Bill 350.
TECHNICAL ISSUES
The term “housing stabilization program” and “reentry” should be defined and expanded to
include a larger unhoused population to adequately expend the appropriation.
OTHER SUBSTANT IVE ISSUES
House Bill 420 – Page 3
HCA reports its Behavioral Health Services Division (BHSD) oversees a wide range of housing
related programs, and the eligibility criteria of programs often include serious mental illness.
Currently, BHSD supports a rental assistance program that began in November 2023 with opioid
settlement funding, Fresh Start Rental Assistance. Fresh Start targets individuals experiencing
homeless people with opioid use disorder and includes the reentry population. To date, 351
individuals have received rental assistance.
MFA reports New Mexico has an incarceration rate of 647 per 100,000 people, and a recidivism
rate of 37 percent, which is higher than the national average. A factor of recidivism for released
inmates includes a challenge in securing long-term, safe housing.
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